Stocks, bonds, Treasury notes, and the US dollar falling together, a rare event, unsettle investors, driven by tariffs under President Trump. These tariffs fueled economic uncertainty, sparking selloffs in US assets. Stocks dropped from expected profit declines, bonds fell as yields hit 4.5 percent, Treasury notes faltered amid inflation fears, and the dollar weakened against major currencies. Safe havens, like gold or German bunds, gained favor. With diversification less effective, reliable refuges dwindle. Investors navigate a volatile market, where cash, despite low returns, offers stability. This turbulent environment demands caution, as traditional safe havens shrink rapidly.
Stocks, Bonds, T-Notes and Dollar Dive as Safe Havens Dwindle
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Survivor bias tricks us all into thinking a market collapse can be outwitted by a “savvy” strategy. They’re all “savvy” strategies right up until they aren’t. We live in a complex, interconnected, highly technical economy dependent on powerful computers, cheap oil, and synthetic fertilizers.
When the stock market collapses? I really will be curious to see the people whose investments, somehow, survived, as they try to spend their wealth. Going to the supermarket? Not when there’s 50% unemployment. Well, technically, yes, you can GO to the supermarket. Trying to get back home with your bag of groceries? You won’t even make it to the parking lot. You’ll be mugged, at the very least. Probably, you’ll also have your throat slit and/or be sodomized.
There are no safe havens, no matter what the redundancy enthusiasts would have you believe.
The few persons who managed to salvage enough wealth to buy a bag of groceries won’t be able to get home with their bag, but the people who made the laws have well-armed forces to go out and bring back enough to feed the forces ordinary fare and their overlords the best in the land.
So don’t worry about those who matter, it’s only those who don’t matter who have to worry.
Why assume there will be groceries to put into those bags?